Correlation Between Woori Financial and Aristocrat Group
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Aristocrat Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Woori Financial and Aristocrat Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woori Financial Group and Aristocrat Group Corp, you can compare the effects of market volatilities on Woori Financial and Aristocrat Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Woori Financial with a short position of Aristocrat Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Aristocrat Group.
Diversification Opportunities for Woori Financial and Aristocrat Group
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Woori and Aristocrat is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Aristocrat Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristocrat Group Corp and Woori Financial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Woori Financial Group are associated (or correlated) with Aristocrat Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristocrat Group Corp has no effect on the direction of Woori Financial i.e., Woori Financial and Aristocrat Group go up and down completely randomly.
Pair Corralation between Woori Financial and Aristocrat Group
Allowing for the 90-day total investment horizon Woori Financial Group is expected to generate 0.56 times more return on investment than Aristocrat Group. However, Woori Financial Group is 1.77 times less risky than Aristocrat Group. It trades about -0.15 of its potential returns per unit of risk. Aristocrat Group Corp is currently generating about -0.25 per unit of risk. If you would invest 3,428 in Woori Financial Group on September 12, 2024 and sell it today you would lose (157.00) from holding Woori Financial Group or give up 4.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Financial Group vs. Aristocrat Group Corp
Performance |
| Timeline |
| Woori Financial Group |
| Aristocrat Group Corp |
Woori Financial and Aristocrat Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Aristocrat Group
The main advantage of trading using opposite Woori Financial and Aristocrat Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Aristocrat Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aristocrat Group will offset losses from the drop in Aristocrat Group's long position.| Woori Financial vs. JPMorgan Chase Co | Woori Financial vs. Citigroup | Woori Financial vs. Wells Fargo | Woori Financial vs. Toronto Dominion Bank |
| Aristocrat Group vs. V Group | Aristocrat Group vs. Fbec Worldwide | Aristocrat Group vs. Hiru Corporation | Aristocrat Group vs. Alkame Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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